Status of Audit Reports

As already pointed out in the 30th Review Meeting of Finance Controllers- MHRD vide letter No.17/1/2011 dated 24th May 2011 has requested all the State Project Directors to get the accounts records of SSA for the year 2010-2011 audited in a proper and timely manner. Recurrence of the following audit observations was also pointed out.

(i) Un-reconciled accounts or funds in transit(ii) Bank reconciliation in arrears or improper

Bank reconciliation

(iii) Large outstanding Utilization Certificates

(iv) Advances being treated as expenditure.

(v) Lack of proper follow up action on old outstanding advances.

(vi) Advances given to State Govt. Department for payment of

Teacher Salary being treated as expenditure

(vii) 2 conditions imposed by PAB for release of funds for teacher

salary under SSA are not complied with

(viii) Inadequate coverage of Procurement process

(ix) All the prescribed documents are not submitted with the audit

report

In order to ensure timely submission of the audit report, streamlining the process of audit to avoid recurrence of audit observations some steps were also suggested. It was also requested that the audit report complete in all respects should be submitted to MHRD by 1st November 2011.

A copy of MHRD letter dated 24th May 2011 has again been circulated in the minutes of the 30th Review Meeting of Finance Controllers to ensure necessary action.

Status of Audit Reports for the year 2010-11 under Sarva Shiksha Abhiyan

Audit Report for the year 2010-2011 have so far been received from the following States/UTs.

Sl. No. Name of the State/UTs1. Chandigarh2.3.

It is again requested that submission of the Audit Report for the year 2010-2011 by 1st November 2011 may please be ensured.

In the last meeting of Finance Controllers it was pointed out that 17 States/UTs out of the 34 States/UTs to whom a deficiency letter pointing out the discrepancies in audited accounts and certain audit observations of concern made by the Auditor in the Audit Report were sent have not sent their 1st response despite repeated reminders. During this quarter 6 out 17 States have sent their response. The following 11 States/ UTs have still to respond to the deficiency letter sent to them.

Status of compliance of Audit Reports for the year 2009-2010

1. Arunachal Pradesh 7. Jammu & Kashmir

2. Andhra Pradesh 8. Manipur

3. Bihar 9. Mizoram

4. Chhattisgarh 10. Nagaland

5. Dadra & Nagar Haveli 11. Rajasthan

6. Goa

Similar letter sent for the year 2008-2009 have also not been responded by the following States/UTs despite repeated reminders.

1. Andhra Pradesh2. Arunachal Pradesh3. Bihar4. Chhattisgarh5. Dadra & Nagar Haveli6. Jammu & Kashmir7. Jharkhand8. Mizoram9. Nagaland

However compliance in respect of the Audit Report for the following years is still pending with the following States/UTs.

2005-

2006

Arunachal Pradesh, Andhra Pradesh, Bihar,

Haryana, Himachal Pradesh, Chhattisgarh,

Mizoram, Manipur & Nagaland

2006-

2007

Arunachal Pradesh, Andhra Pradesh, Bihar,

Chhattisgarh, Haryana, Karnataka, Kerala,

Madhya Pradesh, Manipur, Mizoram,

Nagaland, Puducherry, Sikkim, Tamil Nadu &

Tripura

2007-

2008

Arunachal Pradesh, Bihar, Chhattisgarh, Chandigarh,

Haryana, Himachal Pradesh, Karnataka, Kerala, Manipur,

Meghalaya, Maharashtra, Punjab, Nagaland, Rajasthan,

Tamil Nadu, Tripura, Uttar Pradesh, Uttarakhand &

Madhya Pradesh

2008-

2009

Andhra Pradesh, Arunachal Pradesh, Assam, Bihar,

Chhattisgarh, Chandigarh, Dadra & Nagar Haveli, Goa,

Haryana, Himachal Pradesh, Jammu & Kashmir,

Jharkhand, Karnataka, Kerala, Maharashtra, Madhya

Pradesh, Manipur, Meghalaya, Mizoram, Nagaland,

Punjab, Rajasthan, Tripura, Tamil Nadu, Uttarakhand &

Uttar Pradesh

2009-2010 Andhra Pradesh, Assam, Arunachal Pradesh,

Bihar, Chandigarh, Chhattisgarh, D&N Haveli,

Goa, Gujarat, Haryana, Himachal Pradesh,

Jharkhand, Jammu & Kashmir, Karnataka,

Kerala, Maharashtra, Madhya Pradesh, Manipur,

Meghalaya, Mizoram, Nagaland, Puducherry,

Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura,

Uttar Pradesh & West Bengal

All concerned are again requested to furnish necessary comments/ clarifications/ action taken report at the earliest.

Compliance with the Audit Objections

Attention of the Finance Controllers was also drawn to Para –110.1 of the Manual on Financial Management & Procurement which provides that in order to keep a watch over the settlement of audit objections included in the audit report of statutory auditors and Accountant General / Audit the Accounts Wing / Audit cell of the State Society will maintain a register in the format given in Annexure –XXIV setting apart separate folios for each DDO.

It also provides that progress of settlement of audit objections will be reviewed by the SPD on monthly basis and appropriate further action taken to ensure their speedy settlement.

It was pointed out that the above quarterly statement is not being received in MHRD from all the SIS regularly. This report for the quarter ending 31.3.2011 has not been received from the following State I.S. despite a reminder letter sent to the State Project Directors on 11th July 2011.

Compliance of Audit observations / objections is to be reported to GOI by the SIS regularly on a quarterly basis in the format given in Annexure-XXV.

As provided in Para-110.3 the reported compliance with the objections made by the DDOs shall be verified by the Auditor at the time of next Audit.

1. Arunachal Pradesh 12. Maharashtra2. Andhra Pradesh 13. Manipur3. Bihar 14. Mizoram4. Chhattisgarh 15. Nagaland5. Dadra & Nagar Haveli 16. Puducherry6. Daman & Diu 17. Punjab7. Himachal Pradesh 18. Rajasthan8. Jharkhand 19. Sikkim9. Kerala 20. Uttarakhand10. Lakshwadeep 21. West Bengal11. Madhya Pradesh

MHRD vide letter No.17/8/2011-SSA(DIS) dated 15th September 2011 again pointed out non receipt of the above Report for the quarter ending 30.6.2011 from the following 23 States.

As listed in the letter : (Arunachal Pradesh, Andhra Pradesh, Bihar, Chandigarh, Chhattisgarh, Dadra & Nagar Haveli, Daman & Diu, Himachal Pradesh, Jammu & Kashmir, Jharkhand, Karnataka, Lakshwadeep, Maharashtra, Meghalaya, Manipur, Mizoram, Nagaland, Pondicherry, Rajasthan, Sikkim, Tamil Nadu, Tripura & West Bengal)

All are, therefore again requested to ensure that the Register as prescribed in the Manual is maintained, compliance of objections is reviewed regularly and the quarterly report showing the position of settlement of audit objections is submitted to Govt. of India regularly every quarter by the due date.

The above Report for the Quarter Ending 30.9.2011 due to be received in the Ministry by 15.10.2011 has been received from A&N Islands only.

Status of IPAI-Reports

Delhi Phase-I : Recovery of Rs.108.85 lakhs (Diversion of funds under Teacher Grant) from State Govt’s share under SSA

Phase-II : Settled

Phase-III : Report sent on 26th September 2011.

Andhra Pradesh

Phase-I : Many paras outstanding No. response despite several reminders

Phase-II : -do-Phase-III : Report sent on 30th August 2011.

Haryana Phase-I

Phase-II

:

:

Recovery of Rs.2985.21 lakhs Recovery of Rs.1652.52 lakhs

From SG share under SSA

Phase-III : Report sent on 30.5.2011 no response reminder on 20.9.2011.

Punjab

Phase-I : 2 Paras outstanding–court case

Phase-II : 8 paras pending – under correspondence in 7 Paras PAB’s approval sought.

Phase-III : Report sent on 30.5.2011. No response reminder 20.9.2011.

Orissa

Phase-I : Closed – All settled

Phase-II : One paras requiring regularisation of expenditure Rs.10.63 lakhs pending – PAB’s approval sought.

Phase-III

: Report sent on 30.5.2011 reminder sent on 20.9.2011.

Rajasthan

Phase-I : Closed – Settled

Phase-II : Some paras pending. No response since long despite reminder letter sent on 25.8.2011.

Phase-III

: Report sent on 30.5.2011. No response. Reminder sent on 20.9.2011.

Uttar Pradesh

Phase-I : Release of Teacher Salary on estimation basis- issues pending.

Phase-II :

Phase-III : Report sent on 30.5.2011 No response reminder sent on 20.9.2011

All concerned are requested to expedite the response/Action Taken Report.

Unspent Balance under DPEP(GOI’s Share due from the States)

Sl. No.

Name of the State

DPEP Phase

Amount due

Reasons Amount Refunded

Balance still due

Reminder letter sent

on

1. Assam DPEP-I & II

Rs.409.17 lakhs

(i) Short fall in State Share

(ii) Some expenditure not claimed by SIS

Rs.31.83 Rs.377.34 lakhs

25.8.2011

Sl. No.

Name of the State

DPEP Phase

Amount due

Reasons Amount Refunde

d

Balance still due

Reminder letter sent on

2. Andhra Pradesh

DPEP-I Rs.321.66 lakhs

Short fall in State Share

- Rs.321.66 lakhs

DPEP-II (APERP)

Rs. 13533.36 lakhs

Originally a State Project subsequently education component converted into Central Project. (i) Civil Works as

expansion works of Rs.113 crore got constructed by State Govt. not covered under DPEP.

(ii) Audit disallowances (AG Audit) recovered by World Bank from Reimbursement claims.

- Rs.13533.36 lakhs

29.8.2011

Sl. No.

Name of the State

DPEP Phase

Amount due

Reasons Amount

Refunded

Balance still due

Reminder letter sent on

3. Chhattisgarh

DPEP-I & II

Rs.2070.86 lakhs

Under Reconciliation. Adjustment of advances made after closure of the Project has been reported which is not acceptable.

Rs.119.54 lakhs

Rs.1951.32 lakhs will increase to Rs.2619.82 lakhs due to reduction in liabilities and receipt of Bank Interest and other receipts.

23.9.2011

4. Gujarat DPEP-II

Rs.414.07 lakhs

(AG) Audit disallowances not recovered from concerned departments. Reimbursement claims reduced by sending Minus claims

Nil Rs.414.07 lakhs

26.9.2011

Sl. No.

Name of the State

DPEP Phase

Amount due

Reasons Amount Refunded

Balance still due

Reminder letter sent

on5. Himachal

PradeshDPEP-II Rs.42.00

lakhsNo response Nil Rs.42.00 lakhs 20.7.2011

6. Kerala DPEP-I & II

Rs.495.24 lakhs

Short fall in State share SPD has confirmed & written to SG for release of funds

Nil Rs.495.24 lakhs

26.9.2011

7. Uttar Pradesh

DPEP-II Rs.444.23 lakhs

Reimbursement of some expenditures could not be claimed by the Project due to delay in reconciliation. The society has requested for waiver.

Nil Rs.444.23 lakhs

25.8.2011

Sl. No.

Name of the State

DPEP Phase

Amount due

Reasons Amount Refunded

Balance still due

Reminder letter sent

onUttar

PradeshDPEP-III Rs.136.7

0 lakhs-do- Nil Rs.136.70

lakhs25.8.2011

8. Tamil Nadu

DPEP–I & II

Rs.74.586 lakhs

The Project could not claim. Some expenditures for reimbursement.

Nil Rs.74.586 lakhs

12.9.2011

9. West Bengal

DPEP-I & II

Rs.4468.47 lakhs

Under Process of adjustment. UCs being collected.

Rs.3051.77 lakhs

Rs.1416.70 lakhs

23.9.2011